Published by ChinaMNC · Yuanling

China's State Council Reviews AI+, Teacher Law, and Price Law: Key Takeaways for Foreign Founders

On October 16, 2026, Premier Li Qiang chaired a State Council executive meeting reviewing the 'AI+' initiative, discussing draft revisions to the Teachers Law and Price Law, and approving changes to administrative regulations. Here's what foreign founders need to know.

State Council Meeting Highlights Regulatory Shifts Affecting Business

On October 16, 2026, Premier Li Qiang chaired a State Council executive meeting in Beijing. The meeting reviewed progress on the "AI+" initiative, discussed draft revisions to the Teachers Law and the Price Law, and approved a decision to amend and repeal certain administrative regulations. For foreign founders registering or operating a company in China, these discussions signal important regulatory directions. Below is a summary of the key points and their practical implications.

AI+ Initiative: Focus on Real-World Application and Safety

The meeting emphasized that artificial intelligence is a critical variable shaping future development. It called for deepening the "AI+" initiative by leveraging China's comprehensive industrial system, rich application scenarios, and strong engineering capabilities. The focus is on driving technological innovation through practical deployment.

Key Measures Outlined:

• Strengthen the foundation: Enhance technical research and algorithm innovation, promote synergy between computing and electricity, and increase the supply of high-quality data to address weaknesses and build on strengths.
• Highlight enabling applications: Focus on the real economy, strengthen supply-demand alignment, encourage joint research and development, advance pilot testing, and expand scenario cultivation to translate AI technology into real productivity.
• Balance development and security: Implement industry-specific, tiered and classified policies, strengthen risk assessment, and uphold the bottom line of AI safety.

For foreign founders in tech or AI-related sectors, these points suggest opportunities in application development, data services, and algorithm innovation, but also indicate that compliance with safety and security regulations will be crucial.

Teachers Law Revision: Potential Impact on Education Sector

The meeting discussed and principle-approved the draft revision of the Teachers Law, which will be submitted to the Standing Committee of the National People's Congress for deliberation. The revision aims to strengthen guarantees for teachers' compensation and rights, reduce non-teaching burdens, enhance social public services for teachers, and protect their professional dignity and lawful rights. It also seeks to cultivate a high-quality professional teaching force, improve the teacher education system, and foster a society that respects teachers.

While this law primarily affects the education sector, foreign founders involved in education technology, training, or international schools should monitor how these changes may influence teacher employment practices and qualifications.

Price Law Amendment: Clamping Down on Unfair Price Competition

The meeting also discussed and principle-approved the draft amendment to the Price Law, to be submitted to the NPC Standing Committee. The amendment responds to new circumstances by improving price governance mechanisms, refining government pricing procedures, and clarifying criteria for identifying unfair price behaviors and related legal liabilities.

Key Points for Businesses:

• Govern low-price disorderly competition: According to law and regulations, authorities will address low-price disorderly competition by improving supporting rules such as industry cost investigations and prohibitions on low-price dumping, and by strengthening price enforcement and supervision.
• Regulate platform economy pricing: Continue to standardize price competition in the platform economy, guide enterprises to enhance product and service value, and create a fair and orderly market environment.

Foreign founders, especially in e-commerce or platform-based businesses, should review their pricing strategies to ensure compliance with these evolving rules. The emphasis on value enhancement over price wars may favor quality-driven business models.

Amendments and Repeals of Administrative Regulations

The meeting decided to amend certain provisions of 14 administrative regulations, including the Implementation Regulations of the Archives Law, and to repeal 4 administrative regulations, including the Provisions on Limitation of Liability for Maritime Passenger Transport between Chinese Ports. These changes may affect compliance requirements in specific sectors such as archives management and maritime transport.

Foreign founders should stay informed about these regulatory updates, as they may impact operational procedures or liabilities in relevant industries.

Practical Takeaways for Foreign Founders

• AI and Tech: Leverage incentives for AI application development but ensure robust data and security compliance.
• Education: Monitor Teachers Law revisions for potential changes in employment and qualification requirements.
• Pricing and Competition: Adapt pricing strategies to avoid unfair competition and align with value-based offerings.
• Regulatory Compliance: Keep abreast of amendments to administrative regulations that may affect your industry.

While these are early-stage discussions, they indicate the government's priorities and forthcoming regulatory frameworks. Foreign founders should consider these signals when planning market entry or expansion in China.

This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.

For assistance with registering and operating a company in China, foreign founders can contact ChinaMNC on WhatsApp / WeChat at +86 153 1898 8535.